The Italian luxury tax on private aircraft is currently being reviewed.
Its introduction in December 2011 raised concerns domestically and Internationally, given its excessive rates and intended applicability also to foreign aircraft having spend more the 48 hours on Italian territory.
What is currently being discussed in Parliament is the following:
- an extension of the “allowance period” for non-Italian registered aircraft from 48 hours to 45 days;
- a tax rate reduction for aircraft having a MTOW below 6000 kg; above the rates would remain the current ones;
- an helicopter tax rate increase of 50% (instead of 100%)
- exemption for historical, kit and light sport aircraft;
- the introduction of a “user fee” tax on chartered flights of euro 100 per passenger for flights of less than 1500 Km and of euro 200 per passenger for flights in excess of 1500 km. The details of such new tax are still being discussed and defined in detail.
The current review is still under discussion and timing and definitive outcome are still unclear. Updates to follow.